Seychelles - Public finance



Annual budgets of increasing deficits were common in the 1980s. The public sector is responsible for two-thirds of Seychelles' employment, and the budget amounts to about 40% of GDP. Public investment focuses on social and physical infrastructure, tourism, and export activities. Some privatization has occurred in recent years, including the privatization of some port operations and the Seychelles Tuna Canning Factory, 60% of which was purchased by Heinz.

The US Central Intelligence Agency (CIA) estimates that in 1998 Seychelles's central government took in revenues of approximately $249 million and had expenditures of $262 million. Overall, the government registered a deficit of approximately $13 million. External debt totaled $240 million.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Seychelles

REVENUE AND GRANTS 100.0% 249
Tax revenue 77.8% 194
Non-tax revenue 17.2% 43
Capital revenue 1.5% 4
Grants 3.5% 9
EXPENDITURES 100.0% 203
General public services 11.0% 29
Defense 3.2% 8
Public order and safety 4.0% 11
Education 7.1% 19
Health 6.7% 18
Social security 13.8% 36
Housing and community amenities 0.6% 2
Recreation, cultural, and religious affairs 2.1% 6
Economic affairs and services 11.1% 29
Other expenditures 4.4% 12
Interest payments 13.3% 35
Also read article about Seychelles from Wikipedia

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